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Political-Legal Environment

In: Islamic Marketing

Author

Listed:
  • Čedomir Nestorović

    (ESSEC Business School)

Abstract

Political and legal environments focus on the possibility for a company to easily enter or not a given country or will the company face political and legal barriers. The main example of a political barrier is the boycott of one company or one county as it is the case with the Arab League boycott of Israel forcing companies to choose will they serve the Israeli market or Arab League members markets. The other type of boycott is non-official but its impact might be as impactful as the official boycott when a great number of organizations in the Muslim world boycotted Danish companies because of the cartoons depicting Prophet Muhammad. The legal environment addresses the necessity to use or not the Sharia Law (strong or low implementation in Muslim countries and various forms of accommodation with positive law in other countries) and the issue of standardization and certification. For two industries at least (Islamic Finance and Halal Food) the harmonization of standards and mutual acceptance of certification bodies is a prerequisite for market expansion.

Suggested Citation

  • Čedomir Nestorović, 2016. "Political-Legal Environment," Management for Professionals, in: Islamic Marketing, chapter 4, pages 173-244, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-319-32754-9_4
    DOI: 10.1007/978-3-319-32754-9_4
    as

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